Services
Pride and Polish at GATS 2008 - Dallas, TX
The DOT Doctor Speaks
Resources and Links
Industry News
Industry News, Happenings and FAQs
Weather
Welcome to the DOT Doctor's Virtual Home
Safety Plan
Safety Newletter
Safety Meetings
Driver Safety Performance Checks
Auditing - Logbooks
HazMat
OSHA
Safety Management
Quarterly IFTA Filing
Form 2290 Heavy Vehicle Usage Tax
Unified Carrier Registration
Accounting for the Trucking Industry
Tax by Fax
Tax Filings
DOT Number
Accident and Incidents
Driver Training
Record Retention with PM Alert
New Business Set Up
Auditing - Preparing for the DOT
DOT Audit Checklist
DOT Compliance
Policies, Procedures and Manuals
Drug and Alcohol Plan
Driver Orientation Training
Recruitment and Retention
DAC
DQ Files
Resume Services
HR Services
Expert Testimony
Clean and Green Technologies
Logistics
Image Improvement
Business Package
Authorship
Equipment Recovery
Stormwater Plan
Freight Brokerage
E-Marketing & Virtual Sales Platforms
Additional Services
Subscribe
Site Map
Customer Comments
Clients and Business Ventures
consultants
About Us
ORDER FORM
Employment Opportunities
CONTACT INFO
4 Cs Solutions
IT Services
Web Site Management
Information Security
SOX
TMS WMS ERP
Pirate Queen Designs for SL
Affiliated Services
Our Virtual Office
Visit our virtual office place in SL for face-to-face meetings.
 http://slurl.com/secondlife/Idunn/182/23/98

Bookmark & Share

Where's my Federal Tax refund?  Click here.
Handy Man & Cleaning Services

4Cs Solutions of Dallas/Ft Worth

GOT IT / IS needs?

 Kokopelli Komputer Services.

Now offering a full line of IT Services

Visit our new IT Services Page to learn more.



 

Trucking truth and safety

Highly recommended for those new to the industry as well as the seasoned driver.

Read more and purchase at: Create Space

180_dark-purple-act
In honor of Cora Pearl Wintersteen Sitler (my mother)
180_caring_logo
The DOT Doctor's Newsletter
Register for the DOT Doctor's Newsletter and stay informed of changes in the transportation industry. Receive exclusive coupons and special offerings. Stay in the know; register today.

Email Address:
*
Verify image below:
*

Official PayPal Seal

Nous parlons fran�ais
Hablamos espa�ol
We speak English

The DOT Doctor: Curing your compliance ills. Offering DOT Compliance, logbook auditing, DQ Files & tax filing (IFTA, 2290, UCR) services beginning at $7.50.

Good Stuff; trucks bring it (ATA)
 Logistics 

 

As changes to the global marketplace have threatened its position as a leading low-cost manufacturer, Mexico has re-positioned itself for continued economic growth and prosperity. Tune in to this ProLogis podcast, and learn how the country’s manufacturers have neutralized China’s threat to its export markets by moving up the valued-added ladder. New high-valued industries are thriving, and innovative tax reforms are funding major infrastructure projects and education programs.

Don't have an iPod or MP3 Player?
Just click here and watch the podcast from your PC.


 

 Logistic Management's Leaders in Logistics 
 About.com Logistics / Supply Chain: Most Popular Articles 
  • Total Quality Management
  • Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. This article looks at the history and implementation of TQM. more >>

  • Introduction to Supply Chain
  • Supply chain management can be simple or complex, but all supply chains contain similar elements and are managed in a similar way. This article will give you a introduction to these concepts. Firstly, you will learn about the elements that define a company's supply chain. Secondly, you will discover the three levels of management that are required to efficiently operate the supply chain. more >>

  • Warehouse Best Practices
  • Companies are constantly trying to find ways to improve performance and warehouse operations is area where supply chain managers can focus to gain maximum efficiency for minimum cost. To get the most out of the operation, a number of best practices can be adopted to improve productivity and overall customer satisfaction. Although best practices vary from industry to industry and by the products shipped there are a number of best practices that can be applied to most companies. more >>

  • Green Supply Chain
  • The public have become more aware of environmental issues and consumers are asking companies about their environmental policies. This article examines how some companies have found that starting to create a green supply chain can add to the bottom line. more >>

  • Warehouse Layout
  • The layout of a warehouse may need to be changed to accommodate new product lines or to add greater flexibility to the warehouse operations. When a new warehouse layout is proposed a detailed planning process should be followed to ensure the success of the project. The planning process is discussed in this article. more >>

  • Introduction to Oracle EBS
  • Oracle E-Business Suite (EBS) version 12 is an internet enabled product that can be managed from a single site. A company can operate a single data center with a single database, similar to other ERP products. This release was launched in February 2007 and contains a number of product lines which users can implement for their business. Oracle EBS includes the company’s ERP solution as well as supply chain management (SCM) and customer relationship management (CRM) applications. more >>

  • Logistics Strategy
  • The supply chain constantly changes and that will affect any logistics organization. To adapt to the flexibility of the supply chain, companies should develop and implement a formal logistics strategy. more >>

  • Strategic Supply Chain
  • The strategic supply chain processes that management has to decide upon will cover the breadth of the supply chain. These include product development, customers, manufacturing, suppliers and logistics. more >>

  • Implementing WMS
  • Warehouse Management Systems (WMS) have been available for decades and initially allowed simple storage location functionality. Today WMS systems can be standalone or part of an ERP system and can include complex technology such as Radio Frequency Identification (RFID) and voice recognition. However the basic principle of a WMS has remained the same, which is to provide information to allow efficient control of the movement of materials within the warehouse more >>

  • Logistics / Supply Chain - Articles
  • An index of articles for the Logistics / Supply Chain guide site. more >>

  • Cross Docking
  • The term cross docking refers to moving product from a manufacturing plant and delivers it directly to the customer with little or no material handling in between. Cross docking not only reduces material handling, but also reduces the need to store the products in the warehouse. In this article, the different types, benefits and products suitable for ctross docking are examined. more >>

  • Warehouse Safety
  • Safety in American warehouses is regulated by a series of standards from the Occupational Safety and Health Administration, commonly known as OHSA. The main focus of OSHA is to prevent work-related injuries, illnesses, and deaths. This article examines the most frequent citations given by OSHA and some of the practical solutions that can be employed in the warehouse. more >>

  • Purchasing Strategy
  • Implementing a world class purchasing strategy will allow your company to stabilize or even increase profits at a time when your costs are rising. This step by step guide will show you the key points to helping you company implement the key elements for a world class purchasing strategy. more >>

  • Introduction to SAP
  • SAP ERP Operations solution has become the software backbone that contributes to companies ability to achieve efficiency in the supply chain. more >>

  • Warehouse Productivity
  • Warehouse productivity is a number of measurements that management will analyze to monitor the performance of their warehouse operations. The basis of many of the measures used in warehouse productivity is based on how much it costs to perform an operation. is article looks at a number of measure used in warehouse productivity. more >>

  • Cycle Counting
  • Cycle counting is a popular inventory counting method that allows businesses to count a number of items in a number of areas within the warehouse without having to count the entire inventory. Cycle counting is a sampling technique where count of a certain number of items infers the count for the whole warehouse. This article shows different cycle counting methods that can used in a warehouse. more >>

  • Safety Stock
  • Safety stock is required by businesses to ensure that they have sufficient quantities of material in stock. The safety stock provides coverage for unexpected customer demand, damage in the warehouse or quality issues found in production. However, there are situations where firms do not require inventory to be in stock. This article looks at the methods that can be used to calculate safety stock more >>

  • Lean Supply Chain Management
  • Lean supply chain management should be considered by businesses who want to streamline their processes by eliminating waste and non-value added activities. Companies have a number of areas in their supply chain where waste can be identified as time, costs or inventory. To create a leaner supply chain companies must examine each area of the supply chain. Lean supply chain management can improve the company’s competitiveness as well as improve the company’s overall profitability. more >>

  • Best Practices Green Supply
  • Trend towards developing a green supply chain is popular but most companies are wondering how this can be achieved and where to start. Businesses have been concentrating on improving supply chain visibility, refining efficiency and minimizing cost. Despite the focus being moving towards a green supply chain the goals of visibility, efficiency and cost reduction do not have to be discarded. Firms who have implemented green supply chains can offer a number of best practices that will help others. more >>

  • Order Picking
  • Order picking can be defined as the activity by which a small number of goods are extracted from a warehousing system, to satisfy a number of independent customer orders. Picking processes have become an important part of the supply chain process. Picking is seen as the most labor-intensive activity for almost every warehouse and this article examines order picking solutions that are available. more >>

  • Benchmarking
  • Supply chain operations within an organization should be constantly reviewed to identify where improvements can be made or deficiencies eliminated. One method to help do this is to perform a series of benchmarking tests on their supply chain processes. This article reviews the methods involved in benchmarking supply chain processes. more >>

  • SAP Logistics
  • SAP is the number one vendor of standard business application software and the third largest software supplier in the world. SAP delivers scalable solutions that enable its customers to further advance industry best practices. This article looks at the various logistics components in SAP. more >>

  • Tactical Planning
  • Sales and operations planning (S&OP), sometimes known as aggregate planning, is a process where executive level management regularly meets and reviews projections for demand, supply and the resulting financial impact. S&OP is a decision making process that makes certain that tactical plans in every business area are in line with the overall view of the company’s business plan. more >>

  • Vendor Managed Inventory
  • Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. The vendor and customer are bound by an agreement which determines inventory levels, fill rates and costs. This article describes the VMI process. more >>

  • Forecasting
  • In the supply chain, forecasting is necessary for manufacturers. Companies use material forecasting to ensure that they produce the level of material that satisfies their customers without producing an overcapacity situation where too much inventory is produced and remains on the shelf. This article examines the use of forecasts in the supply chain with statistical and non-statistical methods. more >>

  • Purchasing Performance
  • Measuring purchasing performance is important as the purchasing department plays an ever increasingly important role in the supply chain in an economic downturn. A reduction in the cost of raw material and services can allow companies to competitively market the price of their finished goods in order to win business. This article examines how companies are measuring purchasing performance. more >>

  • Vendor Evaluation
  • Companies are constantly looking at their supply chain to reduce costs while improving the quality of the items they purchase. To select the appropriate vendor for a particular item, a purchasing department can use a vendor evaluation tool. The evaluation of vendors can be determined by using a number of criteria that are either derived from transaction data or observations. The article is an introduction into the vendor evaluation process. more >>

  • Product Life Cycle
  • The product life cycle can be divided into several stages characterized by the revenue generated by the product. A life cycle can be very short or very long. Most products start in the product development stage. Companies develop new products all the time and a small percentage of those reach the market. This article describes the different stages in the product life cycle. more >>

  • Measuring Capacity
  • Capacity is often defined as the capability of an object, whether that is a machine, work center or operator, to produce output for a specific time period, which can be an hour, a day, etc. Many companies ignore the measurement of capacity, assuming that their facility has enough capacity, but that is often not the case. This article looks at the different methids of measuring capacity. more >>

  • Purchasing Rationalization
  • A major American chemical company had completed a year of supply chain reengineering and decided upon a number of best practices that should be implemented. One element of the reengineering was that they decided upon creating a shared service function at their headquarters which rationalized the purchasing and accounts functions. more >>

  • Tactical Supply Chain
  • Tactical supply chain decisions focus on adopting measures that will produce cost benefits for a company. Tactical decisions are made within the construct of the wider reaching strategic supply chain decisions that are made by company management. more >>

  • Purchasing Negotiation
  • Negotiation in the purchasing process covers the period from when the first communication is made between the purchasing buyer and the supplier through to the final signing of the contract. Negotiation can be as simple as trying to obtain a discount on a case of safety gloves through to the complexities of major capital purchases. This article looks at negotiations in the purchasing process. more >>

  • Pallet Storage Methods
  • Many companies store their products on pallets in the warehouse. There are a number of pallet storage methods that allow the warehouse staff to store pallets efficiently. This article will examine a number of the pallet storage methods that are commonly used. more >>

  • Assemble to Order
  • Assemble to order is a production method that occurs when an item is assembled after receipt of a customer's order more >>

  • Incoterms
  • International commercial terms or Incoterms are a series of sales terms that are used by businesses throughout the world. Incoterms are used to make international trade easier. They are used to divide transaction costs and responsibilities between buyer and seller. This article describes in detail the thirteen incoterms that can be used. more >>

  • Introduction to CRM
  • When your company communicates with your customers the process can involve many different people within both organizations using a variety of different methods. To ensure that your company can provide the best customer service experience possible the use of customer relationship management (CRM) software should be considered. This article examines the elements that are found in customer relationship management software. more >>

  • Operational Supply Chain
  • Operational supply chain decisions are made hundreds of times each day in a company. These are the decisions that are made at business locations that affect how products are developed, sold, moved and manufactured. more >>

  • Green Supply Chain Education
  • Companies are focusing a lot of energy and resources in making modification to their supply chain to make it more environmentally sound, or green. To realize these aims companies are having to education their supply chain professionals. In twenty years time the green collar worker may be commonplace and this article examines the content of green supply chain courses that are available now. more >>

  • Reverse Logistics
  • Reverse Logistics can be defined as all activity associated with a product after the point of sale. The aims of reverse logistics include optimization of aftermarket activity, such as customer service, quality inspection and warehouseing, which can produce a new revenue stream, improve customer satisfaction and help the environment. This article examines the elements of reverse logistics. more >>

  • Selecting A 3PL
  • Third party logistics (3PL) companies are a becoming an important part of today’s supply chain. These companies offer services that can allow businesses to outsource part of all of their supply chain management function. This article examines the rise of the 3PL providers and the mechanism that should be used in the selection of a third party logistics provider. more >>

  • Wal-Mart Strategic Initiatives
  • Early 2009 Wal-Mart introduced a plan that was hoped to ensure that the company would remain the industry leader. Project Impact is based on three strategic initiatives that will improve the benefits to the customer. The three initiatives are; Save Money, Live Better; Win, Play, Show; and Fast, Friendly, Clean. This article examines aspects of the Project Impact initiative. more >>

  • Supply Chain Company Failures
  • As we enter a new decade it is time to look back at the past ten years and reflect on three of the largest company failures in the supply chain sector. Although the internet bubble produced a significant number of company failures, changes in customers needs, changes in technology and all round bad management led to some of the more notable failures of the decade. more >>

  • Procurement Cards
  • The procurement card, or P-card, is a form of company credit card that is issued to employees who can then purchase goods and services without having to process the purchase through a traditional purchasing procedure, such as using purchasing requisitions and purchase orders. This article looks at benefits and risks of the procurement card program. more >>

  • Small Manufacturing Business
  • Small businesses are often not associated with manufacturing, however in the US small manufacturers can be found in all fifty states. Organizations such as the American Small Manufacturers Coalition (ASMC) exist to promote small manufacturers and to lobby government to assist with legislation and federal programs. This article examines some of the manufacturing processes that are used by small businesses. more >>

  • Global Supply Chain
  • The supply chain incorporates all aspects of moving material from the vendor through the manufacturing process to the final customer. The supply chain focuses on vendors, manufacturers, intermediaries, logistical services and the customer. The supply chain is no longer contained within countries borders, but encompasses all nations, whether they are vendors, manufacturers or customers. This article will examine the ways in which companies can export their products to new markets. more >>

  • MRO Items
  • MRO items are consumed as part of the production and plant maintenance process. more >>

  • Less Than Truckload
  • Products are moved from point to point by a number of different modes of transport; air, rail, water and truck. In the US, the movement of goods by truck offers shippers infinite flexibility due at a relatively low cost. Truck transportation can move large items faster than rail as the shipment is not dependent on the railroads timetable. This article looks at the Less Than Truckload (LTL) sector. more >>

  • Forklifts
  • The forklift truck has been around for a little under a century, but today it is found in every warehouse operation around the world. Developed as a result of manpower shortages the forklift evolved from a tractor with attachments to the vehicle used today. Recent technology has led to new hybrid vehicles that are environmentally friendly. This article looks at the different classes of forklifts. more >>

  • Six Sigma Terms
  • Six Sigma is a business management strategy that was initially developed by Motorola in the 1980’s, and now is used in many Fortune 500 companies. It is used primarily to identify and rectify errors and defect in a manufacturing or business process. Six Sigma uses a number of quality methods and tools that are used by professionals within the organization who have been trained on Six Sigma techniques. This articles explains some of the common terms used in Six Sigma projects. more >>

  • Total Productive Maintenance
  • In any modern manufacturing facility the equipment used requires a level of maintenance to ensure that the manufacturing process is not disrupted and the production plan can be achieved. World class organizations spend time and resources on maintaining their equipment using a preventative maintenance plan. This article looks at the processes included in Total Productive Maintenance (TPM). more >>

  • Manugistics
  • Manugistics began life as a company called Scientific Time Sharing Corporation (STSC), formed in 1969. Initially STSC was geared towards writing programs using the APL computer language for IBM. After a number of years of developing APL programming for the personal computer and developing operational decision-support software, STSC changed its name to Manugistics in 1992. This article looks the rise and fall of Manugistics and its purchase by JDA Software in 2006. more >>

  • Public Warehousing
  • A company’s supply chain will include warehousing functions. It can be company-owned, owned by a third party logistics (3PL) firm or a public warehouse. Extra warehouse space is sometimes required due to any number of factors including; seasonal inventory, warehouse re-organization or warehouse damage. This article examines public warehousing and the criteria used in selecting a public warehouse. more >>

  • Microsoft Dynamics
  • management software have an increasing number of software companies competing for their business. For business owners who feel that products from Oracle, SAP and JDA are too complex and too expensive for their businesses, Microsoft has a range of products under the Microsoft Dynamics umbrella that are more applicable for small and medium businesses. more >>

  • New Green Industries
  • As traditional industries struggle with the public’s increasing environmental consciousness, there is a number of new green industries that are receiving more attention. In this article I have highlighted a number of new green industries that we will all hear more of in the coming years. more >>

  • Market Segmentation
  • Market segmentation is the identification of parts of the market that are different. Segmentation gives a company a greater ability to better satisfy the needs of its customers. However, not all customers are the same and each has unique characteristics and requirements that may not be found in any other customer. This article examines some of the elements of market segmentation. more >>

  • Introduction to cGMP
  • Current Good Manufacturing Practices (cGMP) are followed by pharmaceutical and biotechnology companies to ensure that their items are manufactured to specific requirements. This article is an introduction to the regulations that govern the manufacture of pharmaceuticals and bioligicals in the US. more >>

  • Third Party Logistics
  • A Third Party Logistics (3PL) provider is a firm that provides outsourced or "third party" logistics. more >>

  • Lean Manufacturing
  • Lean Manufacturing has grown out of the production system developed by the Japanese automaker, Toyota. After WWII, Japanese manufacturers adopted production and quality procedures from US industry and expanded the principles to reduce waste in the manufacturing process. This article looks at the origins and principles of Lean Manufacturing. more >>

  • Radio Frequency Identification
  • The first use of Radio Frequency Identification (RFID) was documented in the 1940’s by the British Royal Air Force to identify aircraft in World War II and was part of the refinement of radar. During the 1960’s RFID was first considered as a tracking solution in the commercial world. The first applications involving RFID were developed over the next twenty years. This article looks at the benefits of RFID and its advantages over using barcodes. more >>

  • Recycled Packaging
  • Packaging materials are used every day in almost every company that manufactures and sells products. Packaging is used to move raw material to a manufacturer, bulk finished material to a distributor and then the final product to the consumer. As the public's perception about the environment changes, companies must look at greener packaging alternatives in their supply chain to satisfy consumers. more >>

  • Reorder Methodologies
  • A crucial activity for planners is to when to decide to place an order. There are a number of reorder methodologies that can be adopted. Although most computer systems are based on the materials requirement planning (MRP) method, there are other methods that planners can use which are examined in this article. more >>

  • US Export Regulations
  • Companies that want to export items from the United States need to understand that their exports fully comply with all statutory and regulatory requirements. Compliance involves the no-export of controlled goods and technologies and the restrictions on shipping to certain countries, companies, organizations, and individuals. This article exaplains some of the regulations that apply. more >>

  • Hazard Materials
  • Hazardous materials are often found in a warehouse. These materials can be either raw materials or finished goods depending on the nature of your company’s products. However, a hazardous material is one that is capable of producing harmful physical effects . This article examines the subject od hazardous materials in your warehouse and the regulations in place for their safe use. more >>

  • Quick Response Manufacturing
  • Quick Response Manufacturing (QRM) is the latest development in lean manufacturing where companies have progressed from the just-in-time (JIT) methodologies of the 1970’s. The QRM process looks at how lead times across the company can be reduced to increase productivity. This article examines some of the fundamentals of quick response manufacturing. more >>

  • Drop Shipments
  • In a depressed economy, companies are looking at any supply chain process where they can save time, money or resources. Drop shipping is a popular process where companies can reduce the need to keep inventory in their warehouse, lower their overall shipping costs and improve customer service. This article examines the advantages and disadvantages of drop shipments. more >>

  • Making Your Warehouse Green
  • Warehouses are busy places. Goods are constantly on the move; inbound and outbound deliveries have to be dealt with as well as the movements of items from location to location. Many companies are looking to warehouse operations are an area where they can make environmentally sound decisions. Companies are concentrating on three areas to help them in this endeavor; reduce, reuse and recycle. This article will show you where you can help your company make your warehouse green. more >>

  • Higher Education in SCM
  • With companies investing ever greater resources in their supply chain there is a distinct trend to have the best and brightest employees managing those supply chains. In the past companies have employed staff with various levels of education that covered a wide range of subjects. Higher education in supply chain management is becoming more important and this article looks at current trends. more >>

  • Lawson Software
  • When companies are considering an enterprise resource planning (ERP) system, the short list usually includes SAP and Oracle. However, Lawson Software offers an ERP system that has been ranked as the number one ERP software product for cost per user by the Aberdeen Group. This article examines the the history of Lawson Software and their current ERP applications. more >>

  • Introduction to Ariba
  • Ariba is the leading provider of Spend Management solutions that offers procurement departments the opportunity to manage, monitor and analyze purchasing expenditure. Ariba offers suppliers the ability to create catalogs that can be accessed by its customers on its Supplier Networ. Founded in 1996, Ariba has over 160,000 suppliers with a monthly spend of over $8 billion. more >>

  • Reducing Waste
  • Businesses are examining every area of their supply chain to reduce costs. Reducing waste has become a key component of any cost reduction program that is implemented. There are a number of processes that can be used in order to reduce waste in a company’s supply chain. This article shows some of the processes that can be adopted to reduce waste in the supply chain. more >>

  • Marks and Spencer Plan A
  • British retailer, Marks and Spencer (M&S), launched Plan A in January 2007, which highlights one hundred commitments to achieve in five years. Due to the success of the program, M&S has now extended Plan A to 180 commitments to be achieved by 2015. M&S have now stated identified a new goal of becoming the world's most sustainable major retailer. This article examines the elements of Plan A. more >>

  • Just In Time (JIT)
  • Just in Time or JIT method creates the movement of material into a specific location at the required time, i.e. just before the material is needed in the manufacturing process. more >>

  • ISO 9000 Certification
  • In recent years many companies have been through the experience of becoming ISO 9000 certified. Sometimes this can be long and expensive process, but businesses are willing to go through certification for the benefits it brings. This article looks at the procedure that a company must follow to achieve ISO 9000 certification. more >>

  • OEE
  • Companies that have implemented Total Productive Maintenance (TPM), often do this as a part of an implementation of other manufacturing improvement procedures such as Six Sigma. When businesses want to evaluate the relative success of their TPM procedures they often use a set of measurements. This article examines the series of metrics that are part of the Overall Equipment Effectiveness. more >>

  • Continuous Replenishment
  • Continuous replenishment is based on the principal of pulled logistics. more >>

  • C-TPAT and the Supply Chain
  • The US Customs and Border Protection (CBP) agency implemented a partnership with private companies after the events of 9/11 to help protect the global supply chain. Customs-Trade Partnership Against Terrorism (C-TPAT) was launched in November 2001, with just seven major importing companies and now includes over 7400 members. This article examines the basics of the C-TPAT program more >>

  • NetSuite
  • NetSuite offers four main software-as-a-service products; NetSuite Financials, which includes ERP, NetSuite CRM+, NetSuite Ecommerce and SuiteAnalytics. The company was founded back in 1998 with the initial startup financed by Oracle CEO Larry Ellison. Since then the company has over 6,500 customers and over 1000 employees. This article gives readers an overview of the NetSuite functionality. more >>

  • Public Warehouse
  • A public warehouse provides short or long-term storage to companies that require additional warehouse space. more >>

  • Evaluated Receipts Settlement
  • Evaluated Receipts Settlement is a method of paying vendors without vendor generated invoices. more >>

  • Activity Based Costing
  • Activity based costing is a methodology that measures the cost and performance of cost objects more >>

  • Clean Diesel Fuel Alliance
  • In 2000, the EPA began working towards making heavy-duty trucks run cleaner by introducing fuels that had lower sulfur content and fewer emissions. The Highway Diesel Rule stated that the pollution from heavy-duty highway vehicles should be reduced by more than 90 percent by the time the 2007 model year began. This article looks at the details and benefits of Clean Diesel Fuel Alliance. more >>

  • About - Logistics / Supply Chain Buyer's Guide
  • Find Guide reviews, top picks, and advice you can use before you buy. more >>

  • smartway
  • In 2004 the Environmental Protection Agency launched the SmartWay program. The program has created a partnership between government, business and consumers to encourage protection of the environment and improvement of air quality by reduce fuel consumption and lessen the carbon footprint. This article looks at the Smartway program and some of the important elements for freight companies. more >>

  • Freight Forwarder
  • Freight forwarder is used by companies who need to ship items internationally. more >>

  • ERP
  • Enterprise Resource Planning (ERP) software is used by companies to help them achieve efficiencies in their supply chain. more >>

  • LIFO
  • LIFO can be used in the warehouse where the first items moved out are the last to arrive in the warehouse more >>

  • RFID
  • RFID uses RF technology and is hoped that the technology will improve the efficiency of inventory tracking and management. more >>

  • Kanban
  • Kanban is a Japanese production technique that uses cards or electronic signals in a computer system to monitor and control workflow in a factory. more >>

  • Greenwashing
  • As consumers become aware of environmental issues, businesses are finding that having a greener supply chain can not only benefit their bottom line, but can be used in the marketing of their products to the public. Greenpeace has attempted to bring these exaggerated claims to the public’s notice and the media has named this "greenwash". This article looks at the how greenwashing is used today. more >>

  • <!--#echo var="sdpn" --> - Glossary<!--#echo var="zmT" -n-->

Don't run your business in the wrong lane.  Let the DOT Doctor help you with your logistics needs. 

  • The DOT Doctor can help you to get the best prices for your load. 
  • The DOT Doctor can train you how to compile your loads for maxium capasity and cost savings.
  • The DOT Doctor can explain 3PL and 4PL services to you while helping to find the best provider to fit your individual needs.
  • The DOT Doctor can help set up your logistics department and train you staff on how to operate effectively and efficently.

Contact the DOT Doctor to see how your bottom line can benefit!

 

Services available as part of a package, subscription or ala carte.

 Forbes.com: Logistics News 
 About.com Logistics / Supply Chain: What's Hot Now 
  • Best Practices Green Supply
  • Trend towards developing a green supply chain is popular but most companies are wondering how this can be achieved and where to start. Businesses have been concentrating on improving supply chain visibility, refining efficiency and minimizing cost. Despite the focus being moving towards a green supply chain the goals of visibility, efficiency and cost reduction do not have to be discarded. Firms who have implemented green supply chains can offer a number of best practices that will help others. more >>

  • Warehouse Productivity
  • Warehouse productivity is a number of measurements that management will analyze to monitor the performance of their warehouse operations. The basis of many of the measures used in warehouse productivity is based on how much it costs to perform an operation. is article looks at a number of measure used in warehouse productivity. more >>

  • Purchasing Strategy
  • Implementing a world class purchasing strategy will allow your company to stablize or even increase profits at a time when your costs are rising. This step explains why your company should reduce the number of vendors in your purchasing database. more >>

  • Warehouse Safety
  • Safety in American warehouses is regulated by a series of standards from the Occupational Safety and Health Administration, commonly known as OHSA. The main focus of OSHA is to prevent work-related injuries, illnesses, and deaths. This article examines the most frequent citations given by OSHA and some of the practical solutions that can be employed in the warehouse. more >>

  • Product Life Cycle
  • The product life cycle can be divided into several stages characterized by the revenue generated by the product. A life cycle can be very short or very long. Most products start in the product development stage. Companies develop new products all the time and a small percentage of those reach the market. This article describes the different stages in the product life cycle. more >>

  • Safety Stock
  • Safety stock is required by businesses to ensure that they have sufficient quantities of material in stock. The safety stock provides coverage for unexpected customer demand, damage in the warehouse or quality issues found in production. However, there are situations where firms do not require inventory to be in stock. This article looks at the methods that can be used to calculate safety stock more >>

  • Green Supply Chain
  • The public have become more aware of environmental issues and consumers are asking companies about their environmental policies. This article examines how some companies have found that starting to create a green supply chain can add to the bottom line. more >>

  • Measuring Capacity
  • Capacity is often defined as the capability of an object, whether that is a machine, work center or operator, to produce output for a specific time period, which can be an hour, a day, etc. Many companies ignore the measurement of capacity, assuming that their facility has enough capacity, but that is often not the case. This article looks at the different methids of measuring capacity. more >>

  • Strategic Supply Chain
  • The strategic supply chain processes that management has to decide upon will cover the breadth of the supply chain. These include product development, customers, manufacturing, suppliers and logistics. more >>

  • Reverse Logistics
  • Reverse Logistics can be defined as all activity associated with a product after the point of sale. The aims of reverse logistics include optimization of aftermarket activity, such as customer service, quality inspection and warehouseing, which can produce a new revenue stream, improve customer satisfaction and help the environment. This article examines the elements of reverse logistics. more >>

  • Logistics Strategy
  • The supply chain constantly changes and that will affect any logistics organization. To adapt to the flexibility of the supply chain, companies should develop and implement a formal logistics strategy. more >>

  • Purchasing Performance
  • Measuring purchasing performance is important as the purchasing department plays an ever increasingly important role in the supply chain in an economic downturn. A reduction in the cost of raw material and services can allow companies to competitively market the price of their finished goods in order to win business. This article examines how companies are measuring purchasing performance. more >>

  • Order Picking
  • Order picking can be defined as the activity by which a small number of goods are extracted from a warehousing system, to satisfy a number of independent customer orders. Picking processes have become an important part of the supply chain process. Picking is seen as the most labor-intensive activity for almost every warehouse and this article examines order picking solutions that are available. more >>

  • Warehouse Best Practices
  • Companies are constantly trying to find ways to improve performance and warehouse operations is area where supply chain managers can focus to gain maximum efficiency for minimum cost. To get the most out of the operation, a number of best practices can be adopted to improve productivity and overall customer satisfaction. Although best practices vary from industry to industry and by the products shipped there are a number of best practices that can be applied to most companies. more >>

  • Introduction to CRM
  • When your company communicates with your customers the process can involve many different people within both organizations using a variety of different methods. To ensure that your company can provide the best customer service experience possible the use of customer relationship management (CRM) software should be considered. This article examines the elements that are found in customer relationship management software. more >>

  • Pallet Storage Methods
  • Many companies store their products on pallets in the warehouse. There are a number of pallet storage methods that allow the warehouse staff to store pallets efficiently. This article will examine a number of the pallet storage methods that are commonly used. more >>

  • Introduction to Oracle EBS
  • Oracle E-Business Suite (EBS) version 12 is an internet enabled product that can be managed from a single site. A company can operate a single data center with a single database, similar to other ERP products. This release was launched in February 2007 and contains a number of product lines which users can implement for their business. Oracle EBS includes the company&#8217;s ERP solution as well as supply chain management (SCM) and customer relationship management (CRM) applications. more >>

  • Benchmarking
  • Supply chain operations within an organization should be constantly reviewed to identify where improvements can be made or deficiencies eliminated. One method to help do this is to perform a series of benchmarking tests on their supply chain processes. This article reviews the methods involved in benchmarking supply chain processes. more >>

  • Warehouse Layout
  • The layout of a warehouse may need to be changed to accommodate new product lines or to add greater flexibility to the warehouse operations. When a new warehouse layout is proposed a detailed planning process should be followed to ensure the success of the project. The planning process is discussed in this article. more >>

  • Total Quality Management
  • Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. This article looks at the history and implementation of TQM. more >>

  • Logistics / Supply Chain - Articles
  • An index of articles for the Logistics / Supply Chain guide site. more >>

  • Lean Supply Chain Management
  • Lean supply chain management should be considered by businesses who want to streamline their processes by eliminating waste and non-value added activities. Companies have a number of areas in their supply chain where waste can be identified as time, costs or inventory. To create a leaner supply chain companies must examine each area of the supply chain. Lean supply chain management can improve the company&#8217;s competitiveness as well as improve the company&#8217;s overall profitability. more >>

  • Operational Supply Chain
  • Operational supply chain decisions are made hundreds of times each day in a company. These are the decisions that are made at business locations that affect how products are developed, sold, moved and manufactured. more >>

  • Implementing WMS
  • Warehouse Management Systems (WMS) have been available for decades and initially allowed simple storage location functionality. Today WMS systems can be standalone or part of an ERP system and can include complex technology such as Radio Frequency Identification (RFID) and voice recognition. However the basic principle of a WMS has remained the same, which is to provide information to allow efficient control of the movement of materials within the warehouse more >>

  • Introduction to Supply Chain
  • Supply chain management can be simple or complex, but all supply chains contain similar elements and are managed in a similar way. This article will give you a introduction to these concepts. Firstly, you will learn about the elements that define a company's supply chain. Secondly, you will discover the three levels of management that are required to efficiently operate the supply chain. more >>

 Shipping and Logistics Industry Today 
 About.com Logistics / Supply Chain 
  • Supply Chain Issues Cost India $65 Billion Each Year
  • A report by the Confederation of Indian Industry (CII) and Amarthi Consulting has surmised that $65 billion is lost each year on account of the inefficient supply chain infrastructure in India. The report, entitled "'Global Competitiveness of Retail Supply Chain - Challenges, Strategies and Recommendations" found that despite a high growth industry such as retailing, the country does not have the supply chain infrastructure to take advantage of the tremendous growth in the Indian economy.

    The report highlighted that supply chain costs in India are as much as 13 percent of GDP as compared to 7 percent in developed countries. This disparity is in part responsible for the $65 billion lost each year, but the country's infrastructure is also to blame as it has not kept pace with the economic growth. The report highlighted the following issues:
    • Since 1947, the railway network has increased only 20 percent in size, while the traffic it accommodates has increased ten fold
    • The lack of an integrated cold chain infrastructure means that farm produce worth $13 billion is wasted each year
    • Capacity constraints at airports causes airline fuel consumption to increase by up to 30 percent

    • Follow me on Twitter more >>

  • Tracing Products Throughout The Supply Chain
  • The Institute of Food Technologists (IFT) has indicated that there is a need for effective product tracing systems after another food recall, this time with half a million eggs. The IFT and the US Food and Drug Administration (FDA) released a joint report that would create a product tracing system to trace the movement of food products from their origin to point of sale. The study was commissioned by the FDA's Center for Food Safety and Applied Nutrition (CFSAN).

    The report highlights a number of key points that the IFT believe should be implemented:
    • Creation of a standard list of information to be collected
    • Identification of the points along the supply chain where information is to be captured
    • Comprehensive record keeping
    • Use of electronic systems for data transfer
    • Inclusion of traceability as a requirement within audits
    • Required training and education on compliance

    • Follow me on Twitter more >>

  • Inventory Problems For Home Improvement Retailer
  • Home improvement retailer, Lowes, has reported that it is going to have to work hard to reduce inventories in the second half of 2010. Their figures for the first six months showed that inventories grew faster than sales, with almost a 10 percent jump in the first quarter and a 5.7 percent increase in the last three months. Although Lowes say this was due to the introduction of new stores, the company is launching a supply chain management program later this year, a Integrated Planning and Execution, or IP&E, initiative. The company will test the program at seven of its merchandise divisions to help optimize inventory and improve sales by better aligning product availability with geographic demand.

    Lowes reported that their overall sales grew 3.7 percent in the second quarter ending July 30 and same-store sales expand 1.6 percent over the same quarter a year ago. However, their inventory turns fell from 4.5 percent last year to 3.6 percent in the last quarter indicating that products were remaining on store shelves longer before they are sold.

    Follow me on Twitter more >>

  • Is Mexico China’s New Rival?
  • Flextronics, the world's second-largest custom electronics maker, is considering moving some of its manufacturing from China to Mexico. The electronics company has reviewed costs of manufacturing in China and found that it can achieve a significant saving by moving that business to other nations. The main concern for companies such as Flextronics is the rate that labor costs have risen in recent years. In the last five years wage increases in China have dramatically, up to 20 percent per year, as both government and social pressure has pushed foreign companies to improve manufacturing workers compensation.

    While Chinese workers have seen their wages rise the same is not true in Mexico. Labor costs have remained flat and this has not gone unnoticed by the large electronics manufacturers such as Flextronics and their rival Foxconn. Flextronics' Mexican facilities manufacture televisions for LG Electronics and these facilities have contributed 15 percent of the manufacturer's sales in the fiscal year to March 2010. This figure is up from 11 percent a year earlier, showing that Mexico is gaining popularity for the company as a manufacturing center. Not only are labor costs an advantage for manufacturers but its proximity to the US and it's NAFTA status could mean that Mexico will siphon jobs away from China, as their labor costs continue to rise.

    Follow me on Twitter more >>

  • Calculate Your ERP ROI
  • Panorama Consulting Group, an independent ERP consulting firm, announced the release of an online ROI calculator. The ROI calculator will help companies in reviewing the potential return on investment and benefits from ERP software purchases. The ROI calculator was created with the data collected from various internal and external research sources. It is designed to be a high-level estimate of potential ROI based on user estimates of tangible costs such as inventory, Selling, General and Administrative Expenses, labor and intangible costs such as average on-time delivers, average financial close time, and order fill rates.

    The ROI calculator will use these cost estimates and an employee count to calculate ERP software users and investment costs which include license costs, project management, and implementation costs. The final calculation provides both a return on investment calculation and a payback period in number of years.

    Follow me on Twitter more >>

  • Supply Chain Problems For UK Retailer
  • One of the UK's largest and well-known retailers, Halfords, is beset by a number of issues relating to their current program to centralize distribution. The supply chain delays have forced the retailer to suspend its next-day delivery service until the issues have been resolved. Halfords opened a new distribution center in the midlands city of Coventry back in July, but reports of system issues have left many stores understocked. The new central DC is to replace two existing distribution centers, Oxford and Redditch, to save £4 million a year by 2011. Analysts are suggesting that the current problems in the supply chain could lead to a 2 percent drop in sales this quarter, negating any of the proposed savings.

    Visitors to the company's website become acutely aware of the issues as the next-day delivery service for items has been replaced with a promised six-day delivery, which is sure to drive traffic away from the retailer. No date has been given by Halfords for the resumption of next day delivery or indeed when the retail stores will see normal deliveries. One store manager told the British newspaper, Daily Mail, that trucks are "turning up missing a third of our stock. It has seen sales nosedive."

    Follow me on Twitter more >>

  • European Freight Rates Reach Milestone
  • Consulting firm Cap Gemini have published the latest edition of their Transport Market Monitor in which it shows that European transport prices increased in the second quarter of 2010 to index 100.9, which is a rise of 13.5 percent compared with the previous quarter. This is the first time that price levels equaled a level from before the present current economic crisis, which was back in early 2008.

    The reasons for the price increase are mainly due to the drop in available capacity which has decreased 44 percent between the first and second quarters of 2010. The capacity index figure is now at 61.3, which is the lowest level since January 2008. Other factors that have driven prices up include an increase in fuel and labor costs. Going forward it may be the increase in diesel costs and a shortage of skilled workers that will push prices higher rather than a further decrease in available capacity.

    Follow me on Twitter more >>

  • Mexico Adds More US Goods To Trariff List
  • Mexico has retaliated against the US in the battle of cross-border trucking. This week Mexico expanding the list of American goods that will be hit with punitive tariffs, a year after they hit US goods with $2.4 billion in tariffs in 2009. Reports now say the list now includes ten new items including pork, oranges and chewing gum, to add to items already on the list, such as frozen potatoes and grapes.

    The original list of tariffs was created after the US Congress stopped a program giving Mexican trucking company's access to US highways. The new tariff additions are in part retaliation to a $600 million bill signed by the President to increase security on the US-Mexican border and add customs officers at ports of entry.

    The Department of Transportation (DoT) has indicated that a new cross-border trucking plan would soon be ready for review by Congress. But opposition is fierce from many Democrats, the Teamsters union and the Owner-Operator Independent Drivers Association. Despite this the US Chamber of Commerce and the American Trucking Association (ATA), favor reinstating a cross-border trucking program.

    Follow me on Twitter more >>

  • Toshiba Plans Procurement Cost Cutting
  • Toshiba, Japan's largest chipmaker, has announced plans to cut procurement costs by 1 trillion yen ($11.7 billion) over the next three years. They aim to do this by seeking new suppliers in a number of emerging economies. Toshiba will spend 70 percent of its procurement budget outside of Japan from 2012, up from 57 percent in the 2010 financial year.

    Toshiba is one of many Japanese companies who have been increasing efforts to reduce their procurement costs. Hitachi plans to double its overseas procurement ratio to 50 percent in three years to reduce its reliance expensive domestic suppliers, while Sony has reduced the number of its suppliers by more than fifty percent.

    Toshiba has employed buyers in India and Vietnam and plans to do the same in Russia and Eastern Europe. It plans to hire local experts to speed its search for new suppliers. The company will cooperate on cost-cutting with the foreign sub-contractors that design and manufacture its electronics.

    Follow me on Twitter more >>

  • Food And Drink Supply Chain Study
  • A study by British logistics company, Culina Logistics, found the two thirds of managers in food and drink companies are aiming to improve supply chain cost efficiencies in the next year. Management at fifty food and drink companies was asked about their supply chain performance last year and their plans for next year. Nearly half of supply chain managers indicated plans for improvement in primary transport, followed closely by secondary transport and then warehousing.

    Almost half of managers had mixed feelings about the performance of their supply chain in the past year. They indicated some areas were on or above target while other areas of their supply chain had not reached expectations.

    Warehousing was highlighted as the greatest area of under achievement for supply chain managers followed by secondary transport, waste management, information technology and pallet management.

    Follow me on Twitter more >>

Webcasts

17th Annual Masters of Logistics Study: The Masters increase their lead
17th Annual Masters of Logistics Study: The Masters increase their lead
On-demand starting 9/27

Join Group Editorial Director Michael Levans and the Masters research team as they share the findings of this highly-anticipated annual study that identifies emerging trends in the field of logistics and provides benchmarking data on current transportation management and distribution practices among the world’s leading organizations.  more >>

Watch It Now




Posted: Sep 8, 2008  |   Permalink

Fresh Delivery: A Supply Chain Success Story
Fresh Delivery: A Supply Chain Success Story
On-Demand (Originally broadcast September 23 at 1 p.m. EDT)

In this webcast, you will hear how Papa John’s implemented integrated solutions including Replenishment, Warehouse Management, Transportation Management and Performance Management to address visibility concerns, inventory accuracy and increasing costs. This resulted in significant efficiencies and Papa john’s will discuss how the power of technology can be a strategic differentiator.  more >>

Watch It Now
2008 Green Logistics and Supply Chain
2008 Green Logistics and Supply Chain
On-demand

Sessions in this online series of educational webcasts include: Keynote: Green Logistics for the Real World; Reducing Your Carbon Footprint: A Practical ; Best Practices in Supply Chain Management; and Technology's Role in the 'Green' Supply Chain, How 3PLs Can Help You Go Green.  more >>

Watch It Now


 

Whitepapers

Logistics Management Featured White Papers

The Synchronized Distribution Supply Chain The Synchronized Distribution Supply Chain

Sponsored by Motorola

SUPPLY CHAIN SOLUTIONS FROM MOTOROLA
Presenting the Synchronized Supply Chain: A tighter, more efficient and profitable supply chain that comes from innovative mobility solutions. Unlock the potential of your supply chain with mobile computers, wireless networks and smart applications that keep your business running smoothly and in sync?from the moment an order is placed to the moment it's delivered to your customer.

Click Here to Download


 

Sponsored bySponsored by Sterling Commerce

No Excuses! Why Optimizing Transportation Management is Within the Reach of Every Company

Optimizing transportation management in any organization is getting more difficult with the fluctuating price of oil. The manual processes that once thrived in the stagnant pace of change in transportation costs are no longer adequate to keep up with today's decision making requirements. Even though solutions have added functionality and deployment options to suit a wide range of business categories, only 39% of companies surveyed are using any type of transportation management solution. In addition, over 40% of respondents are achieving less than 90% on-time delivery performance.  Learn what you need to do to join the Best-in-Class rank and increase your organization’s performance.

Click Here to Download

ERP vs. WMS: What's Your Best Option?
Free Whitepaper Download. 

 The Courier Shop » Page not found 
 Global Supply Chain Council Articles RSS Feed 
  • Chinas’ Logistics real estate bounces back, however there is a catch
  • CBRE’s Executive Director of Industrial and Logistics Services, Asia – Andrew Hatherley predicts higher rents and fewer available properties over the next 12 months.
     
    Just focusing on Shanghai, average Logistics rents fell approx 16% during the Recession, however the last 3 Qs have all seen growth to a total of just over 6%.
     
    CBRE expects that this rental growth will accelerate rapidly during the next 12 months due largely to……
     
    A) vacancy rates dropping on the back of increasing demand and
     
    B) the effect of virtually no new  International Grade warehouse construction in the past 2 years.
     
    The increased demand for warehousing space is coming from higher levels of local consumer consumption coupled with much improved Export levels ( now back to early 08 levels )
     
    Most other major cities in China are also enjoying rental growth, inc Beijing which has improved by 3.1% in the 1st half of 2010 with solid volumes.
     
    Mr Hatherley believes these factors are leading many of the major Logistics Development companies to bring forward plans to restart projects in Q4 of this year.
     
    However, taking into consideration the likely construction time, the first of these new warehouses wont be available for occupancy until well into 2011
     
    Given the above, CBRE predict that 2011 will be a challenging year, real estate wise, for 3PLs and Logistics companies as rents will rise quickly and available warehouse options will dry up fast.
     
    Current estimates by CBRE show Logistics rental rates for new leases could rise by up to 20% in the next 12 months. 

    more >>

  • Li & Fung to take IDS private in a US$ 901 million
  • Li & Fung, the consumer goods sourcing company, a supplier to Wal-Mart Stores, recently offered to take Integrated Distribution Services Group (IDS) private for HK$7 billion ($901 million) in order to expand its business into mainland China.

    The Fung family of Hong Kong-based Li & Fung, which holds a 32.96-per cent stake in IDS has offered HK$21, or 0.585 of its stock, for each share in logistics firm IDS, according to a filing with the Hong Kong stock exchange.

    Li & Fung Group and the Fung family jointly own about 45 per cent of IDS.

    The IDS Group, part of the Li & Fung Group, where Li & Fung Group along with the Fung family jointly own 44.94 per cent, is a leading integrated distribution and logistics services provider specialising in value-chain logistics with extensive networks in China, ASEAN, the US and the UK.
    Headquartered in Hong Kong, the $1.8 billion turnover IDS provides integrated-distribution services covering logistics, distribution, manufacturing and international.

    IDS currently has over 400 customers including many blue-chip multinationals from a wide spectrum of industries including consumer, healthcare, retail, footwear and apparel and garment.

    Founded in Guangzhou in 1906, Li & Fung Group is a multinational group of companies operating in three distinct core businesses - export sourcing through Li & Fung Limited, distribution through IDS and retailing through Convenience Retail Asia Limited, Trinity Limited and other privately-held entities.

    The Li & Fung Group has a total staff of over 35,000 across 40 economies worldwide and reported revenues of $16.7 billion for 2008.

    Li & Fung, the biggest supplier of apparel and toys to Wal-Mart Stores, generates most of its revenue from the US and Europe, will gain entry into Asia, especially China, where IDS has majority of its clients.
     
     

    more >>

  • Food spoilage rate still high in China
  • THE National Development and Reform Commission (NDRC) has revealed that 20 per cent of fresh fruit and vegetables, 30 per cent of fresh meat and 15 per cent of seafood are spoiled in delivery, costing CNY100 billion (US$147 million) a year, reported China News.
     
    To counter this, the central government has launched a five-year plan to develop an agricultural cold chain logistics system to enhance preservation and storage of fresh agricultural produce so that producers can better compete in global markets.

    China's cold chain logistics system is in its initial stages of development compared to the US, the European Union and Japan, where cold chain logistics practices cover 100 per cent of poultry and 95 per cent fruit and vegetables.

    This new five-year plan for agricultural produce will include the development of regional cold chain logistics distribution centres as well as reorganising resources of major players in the sector.

    The plan aims to set up an overall cold chain logistics system for the country in 2015 to handle more than 20 per cent of fresh fruit and vegetables, 30 per cent of the meat and 36 per cent of seafood.

    The frozen food five-year plan calls for increases in cold chain coverage to 30 per cent of frozen fruit and vegetables, 50 per cent of frozen meat and 65 per cent of frozen seafood to reduce spoilage 15 per cent for fruit and vegetables, eight per cent for meat and 10 per cent for seafood.
    The plan intends to raise China's competitive standing in the global agricultural markets where it has many comparative advantages if it were not for its high spoilage rate because of an inadequate cold chain system. Food spoilage rate still high in China

    more >>

  • Ningbo partners with IBM for new logistics platform
  • Ningbo plans to build an information platform linking 5,000 logistic companies in the city in the next three years.
     
    "It's like an Alibaba platform which connects all of the logistic companies in Ningbo and enables them to release information and trade on it," said Li Bao, deputy director of Ningbo Hi-Tech Industrial Development Zone.

    Ningbo development zone on Monday signed a memorandum of understanding with IBM's China unit, which is going to set up a development lab in Ningbo, the fourth after ones in Beijing, Shanghai, and Xi'an.

    "Only 5 percent of Ningbo's logistics companies have their own information systems while the rest are running their businesses very inefficiently," said Wang Jinghang, president of Ningbo Logistics Association.

    According to industry figures, logistics costs account for 30 percent of the total costs of goods made in China, while internationally that figure is about 10 percent.

    Lowering the cost of logistics and making better use of resources is "extremely important" for Ningbo, said Matt Wang, the director of IBM China Development Laboratories.

    He added that the lab would focus on software development, testing, consulting and training to provide services for the city's logistics enterprises.

    Overall throughput in Ningbo port reached 384 million tons last year, with a year-on-year increase of 6 percent, ranking it second among coastal ports in China.

    The city's plan for the logistic industry is part of its plan to build a "smarter city" including manufacturing, financial services, the leisure industry, and logistics.

    Many cities in China have been working to upgrade information processing and this has provided international IT companies with more opportunities for expansion in the country.

    US-based IBM, for example, has established cooperation with various cities including Guangzhou, Kunshan and Shenyang over the past two years.

    more >>

  • Top 10 China Electronics Wholesale Markets
  • With rapid development of China over the past thirty years, Chinese manufacturing industry ranks 4th among all manufacturing industries of the world, just lagging behind United States Of America, Japan and Germany. Especially in light-industries, China has been a biggest manufacturing and supplying center of consumer electronics and small commodities in an extremely wide range. Both in build quality, price and variety of products, Chinese suppliers have sharp edges in competing with those branded gadgets. Here Top 10 China Electronics Wholesale Center will be introduced below:

    1. Guangzhou Wholesale Market
    Guangzhou is a very famous city for those importers and buyers importing Chinese merchadize often because it is the city for the Canton Fair – One of World’s Largest Fairs and held twice in this city every year. It attracts 300 thousands of businessmen coming to there and its sales reaches 30 – 40 billion US dollars in each fair. Besides the Canton Fair, There are nearly 50 wholesaling centers and over 100 thousands of vendors active in this city. From toys, textile & clothing, stationary, gift product to consumer electronics, communication device, you can get everything you are looking for.

    2. Shenzhen Seg Electronic Wholesale Market
    Shenzhen Seg Electronic Wholesale Market, the world’s top distribution hub of electronic products such as China cell phones and components, is located in Shenzhen where exist over 10,000 electronics manufacturers and more than 50,000 distributors of various scales. Plus its geographical advantage of adjecent to Hong Kong, Shenzhen it a priority Choice to importing electronics direct from China Electronics Wholesale Center.

    3. Yiwu China Commodity Centre
    Yiwu China Commodity Centre is the largest small commodity market not only in Mainland China, but also in the world. It’s famous for providing an extremely wide range of small commodities while concentrated on gifts and decoration gadgets at competitive price. People from all over the world come here to buy goods for retail in other parts of and abroad, in particular. Because of its large variety of quality and cheaper price, this free market has also become shopping paradise for tourists.

    4. Linyi Motorcycles and Accessories Trading Center
    The Motorcycles and Accessories Trading Centre is located in the Linyi Wholesale Town, which is No. 3 wholesale market in China in terms of total trading volume. With convenient transportation and excellent logistics services, the trading centre is the leading motorcycle and accessory wholesale market in China.

    5. Jiangsu China Eastern Silk Market
    Located in the traditional place of silk production of Wujiang, Jiangsu Province, China Eastern Silk Market is one of the top wholesale centres in China, which specializes in the trading of silk products. As a national silk distribution and price-setting centre, it has an Important role to play in both domestic and international silk market.

    6. Nansantiao Wholesale Market
    As the largest small commodity in North China, Nansantiao Wholesale Market in Shijiazhang, Hebei Province boasts the name of “the World’s Nansantiao”. Apart from a small commodity trade, it also provides accommodation, warehousing, logistics and financial services to customers from all over the country as well as from over 20 nations and regions in East Europe, Africa and Central Asia.

    7. Chaotianmen Market
    Started as retail market, Chongqing Chaotianmen Market has now grown as one the top wholesale market in China. With more than tens of thousand of goods in over 20 categories, ranging from clothing to office supplies, the market’s annual trading volumes hit 20 billion RMB in 2006.

    8. Shenyang Wuai Market
    Shenyang Wuai Market’s location in the Northeast of China gives itself geographical advantages for trading with Korea, Russia and other nations and region in Asia. It’s another one of the top 10 wholesale markets in the country, which specializes in clothing and small commodities.

    9. Wuhan Hanzheng Street Market
    Wuhan Hanzheng Street Market in Hubei Province offers wholesales in almost everything, from clothing to interior decoration and from toys to office supplies. But it’s more well-known as distribution centre for clothes of a variety of quality.

    10. Changde Bridge South Market
    Changde Bridge South Market is one of the largest wholesale markets in China, with over 30 thousand suppliers of industrial equipment, household appliances, textile, non-staple food, aquatic products, building materials and
    much more.
     


    more >>

  • General Motors To Up Local Sourcing in Southeast Asia
  • General Motors plans to increase purchases of components and services from Southeast Asian-based suppliers to up to USD 1.6 billion per year within three years, Martin Apfel, president of GM Thailand and GM South-east Asia Operations (GMSEA), told reporters at a press conference in Bangkok recently.

    Apfel said GM needs to build vehicles in the markets where they are sold. "For that to become a reality, we need more component localization," he said. The vast majority of the spending increase will be in Thailand, where the company currently spends around $200 million per year on outsourcing parts and services.

    GM plans to ramp up vehicle production at its 140,000-unit plant in Rayong, Thailand, from next year with the launch of a new pickup truck range, to be followed by passenger vehicle derivatives including a midsize SUV.

    The company hopes to increase its exposure to booming vehicle demand across the ASEAN region. In the first half of 2010, sales in the region's main markets increased by 41 percent to a record 1.18 million units.

    General Motors needs a higher level of local sourcing also to support its new $500 million Thai diesel engine plant, which is due to become operational in early 2011.

    Construction of the engine plant was halted in 2008 during the global financial crisis but resumed in 2009 after GM secured financing of around $400 million from a consortium of Thai banks. It will have an annual production capacity of 100,000 2.5- and 2.8-liter engines, which GM developed with the collaboration of Italian engine specialist VM Motori.

    GM also assembles the Captiva SUV and the Cruze and Aveo passenger cars in Thailand, from CKD kits imported from its South Korean unit, GM Daewoo. Local content of these models is very low, which means that they incur high taxes across the ASEAN region. This has held back the company's sales performance in recent years.

    Apart from Thailand, GM has a small assembly joint venture in Malaysia. Production at its Indonesian plant ceased several years ago but may be restarted once the company's regional strategy unfolds.

    Other than its pickup-based program, the recently launched Cruze compact sedan is particularly important for the company's future growth in the region. "This model has Chevrolet's new global design features that are becoming the common signature on all new products," Apfel added.

    To increase local sourcing, GMSEA will need to increase its regional engineering capabilities — particularly in Thailand. Apfel says GM is "growing our Thai engineering capabilities and are currently expanding the engineering center by 20 percent."

    more >>

  • China Merchants, Americolds JV acquires CMCC, KX Logistics
  • CHINA Merchants Americold Logistics Company Limited (CMAC), the 51-49 joint venture established between China Merchants Holdings (International) Co. and Americold Realty Trust, has completed the acquisition of 70 per cent of China Merchants International Cold Chain (Shenzhen) Co Ltd (CMCC) from CMHI.

    "The establishment of CMAC with Americold, and the acquisition of KXL and injection of CMCC enables CMHI to solidify CMAC as China's premier third-party temperature-controlled logistics provider, operating an integrated nationwide platform across 15 cities in China," said CMHI chairman Fu Yuning.
    "As CMHI's platform for cold chain services, CMAC plans to develop and promote cold chain logistics services in the broad consumer goods market in China," said Dr Fu.
    The joint venture also signed a definitive agreement to acquire KangXin Logistics (KXL) from Rich Products Corporation for HK$700 million (US$90 million) for both transactions. CMHI and Americold will fund these transactions in accordance to their respective proportional share ownership in CMAC.
    KXL, a joint venture subsidiary of Rich, is a third-party cold-chain logistics (3PL) company, serving multi-national food companies as well as Rich's own warehousing and distribution needs in China.

    more >>

  • Chu Kong Ship to buy 75% stake in Civet Logistics
  • Civet Logistics is principally engaged in the operation and management of Civet Port which is located in the southwest of Zhuhai City for port storage and transportation businesses. Civet Port is equipped with one 1000 DWT multifunctional berth, two 500 DWT multifunctional berths and one container yard with site area of approximately 80,000 square metres. The total site area is around 100,000 square metres with annual throughput capacity of 150,000 TEU.

    The proposed acquisition enable the company to strengthen its market position in port operation industry, to create a favorable environment for its further expansion in the Pearl River transportation system and to benefit from services diversification which collectively will enhance the company's revenue stream, Chu Kong Shipping Development said in a statement.

    Pursuant to the equity transfer agreement, Chu Kong Shipping Development will procure Civet Logistics to settle its liabilities of approximately RMBB55.209 million ($63.458 million) within thirty business days from the completion date.
    Chu Kong Shipping Development said it plans to buy a 75% stake in Civet Logistics for an initial consideration of RMB77.69 million ($89.299 million).

    more >>

  • Slow steaming, high rates equal lower, slower service to shippers
  • SLOW STEAMING, the popular cost cutter and environmental public relations play for carriers, is not nearly so popular with shippers who see rates going up and transit times going down, according to a report from the New York-based Seeking Alpha financial portal.

    Some shipping lines have slowed to 12 knots while clippers, fast 19th century square riggers, averaged 14 - 17 knots, the report noted.

    Maersk, with more than 600 ships, finds that super-slow speeds reduces fuel consumption and is believed to have saved the company more than US$102 million on fuel since the measure was introduced.

    Maersk spokesman Bo Cerup-Simonsen said: "The cost benefits are clear. When speed is reduced by 20 per cent, fuel consumption is reduced by 40 per cent per nautical mile. Slow steaming is here to stay. Its introduction has been the most important factor in reducing our CO2 emissions in recent years, and we have not yet realised the full potential. Our goal is to reduce CO2 emissions by 25 per cent."

    But slow steaming compels retailers to accept longer planning horizons which will increase wastage and the production of unneeded goods, said the report.
    Meanwhile the cost of shipping an FEU from Hong Kong to Los Angeles without a contract, or spot rate, was about US$871 in July 2009, a five-year low. In July this year the spot rate hit $2,624 - a five-year high.

    Lifetime Brands, which makes and sells products under brand names like Cuisinart and KitchenAid, said it was now paying about double last year's rates, and Costco said it was now back to 2007 rates.

    Shipping lines have pulled capacity out of service when the economy tanked and have been slow to bring it back in support of higher prices. To make matters worse, there are not enough containers to meet demand, again pushing up rates and prices, said the report.

    Mona Williams, vice president for buying at the Container Store, said the company was telling manufacturers to book space well in advance, and that it was moving delivery dates earlier.

    And for items that simply must arrive, "sometimes you can offer to pay a steamship company a larger amount of money, and they might take somebody else's container and not put it on," said Lifetime Brands CEO Jeffrey Siegel, but "in most cases, you just have to wait."

    Mr Siegel said he has begun to schedule items to arrive as long as three months before they need to be in stores. That means a higher cost for holding inventory than usual.

    more >>

  • Poor infrastructure holding back India's growth
  • Forwarders claim inefficiency and lack of facilities are clogging-up trade. The criticism comes as lines implement congestion surcharges at India’s leading container port, Nhava Sheva, and divert services.

    Strikes and congestion have also impacted other leading container terminals in India this year.

    Sanjay Tejwani, Director of Oceanfreight for DHL Global Forwarding India, told IFW the inadequacy of India’s logistics infrastructure could constrain the nation’s growth.

    “India’s exports, for example, could be rendered less competitive due to higher transit times and lower reliability,” he said.

    Gracias Thevar, Country Manager of logistics services at GAC India, said delays at ports were common, key facilities proving unable to cope with the rapid growth of international trade in recent years.

    “The existing rail and road infrastructure forces cargo to move in and out of only a few major ports,” he said.

    “The system is rife with inefficiencies, each adding to delivery cost and time – the two main measures of transport – which has an immediate and fundamental impact on the competitiveness of Indian goods abroad, and the cost of foreign goods in India.”

    Tejwani said the slow progress of port and rail privatisation, and roads that are “well below acceptable standards” were limiting India’s potential to handle more international cargo, “resulting in congestion at ports and inland container depots and an increase in transaction costs”.

    A spokesman for shipping line CMA CGM told IFW the congestion at Nhava Sheva was the result of the slow movement of imported containers to the various inland container depots.

    “Productivity at the terminals is also hit by delays in docking and sailing because of a shortage of pilots at Nhava Sheva,” he said.

    “We need more pilots, particularly those licensed for larger vessels. This would reduce idle time at Nhava Sheva and improve quay productivity.”

    Rail services into terminals are also poorly organised, he claimed, and CMA CGM is now using private trucks to reduce loading delays.

    “The delay for the export containers can be seven days if they miss the intended ship,” he said.


    more >>

  • Agility enters Cambodia's logistics market
  • GLOBAL logistics provider Agility has officially commenced operations in Cambodia with the opening of an office in the capital Phnom Penh, to strengthen its network in Indochina.

    Agility Cambodia will offer services to both locally-based and network customers in Cambodia, with a range of air freight, sea freight, customs clearance, warehousing and local distribution solutions. A cross border trucking service initially connecting Ho Chi Minh in Vietnam to Phnom Penh and Bangkok in Thailand to Phnom Penh will be available, followed by services linking South China and Vietnam.
    Agility Cambodia will also focus on other key sectors including Project Logistics in the oil and gas sector and Fairs and Events, a company statement said.

    "Agility has a great opportunity to develop the Cambodian market as demand is growing for a broad range of freight and logistics services. We are seeing a significant increase in international trade from Cambodia to the US and Europe, as well as to the rest of Asia. We have also seen an increase in cross border trade within Indochina and between Asean countries," said Mike Gildea, CEO, Agility, South East Asia.
    To support its growth in Cambodia Agility has appointed Phang Sovong as general manager, Cambodia.

    more >>

  • Grand China Logistics to acquire shares from Norwegian shipping company
  • It is reported that Chinese container shipping company, Grand China Logistics Holding Co Ltd was approved by the National Development and Reform Commission to acquire parts of stakes from a Norwegian shipping company.

    According to the NDRC Grand China expects the share to be at least 50% and hopes to get involved into transporting special equipment, like drill platform after the purchasing.

    The deputy manager of Grand China said ''Though approved by the NDRC, there is a lot more work to be done and other relevant details have to be agreed upon, thus the formal agreement will be signed in September.''

    The Norwegian company is in some aspects a shipping expert in drill platform transportation.

    more >>

  • China builds cold chain standards with US help
  • As China begins establishing cold chain national standards to boost the industry's development, the US is lending a helping hand to create a win-win situation for both sides, a US official said on Tuesday.

    A cold chain is a supply chain system for keeping perishable food in a low-temperature environment from processing to storage, transport, distribution, retail and finally to customers. Products involved including meat, seafood, vegetables and fruits, as well as medicines.

    With China further developing the cold chain industry, the US could make its agricultural products accessible to more inland Chinese customers and sell logistics equipments to Chinese companies, said Eric Trachtenberg, director of the agricultural trade office at the US embassy in Beijing.

    He also said that the US, as a major food importer from China, will have safer China-exported food once the cold chain industry in China is well established.

    Trachtenberg made the remarks at a press conference of the Second US-China Cold Chain Standards and Regulations Conference, which was held on July 27 and 28 in Beijing.

    China is a latecomer in the industry. The issue of national standards was only raised in 2006, according to Huang Jiujiu, department director of the China Federation of Logistics and Purchasing.

    The lack of national standards poses as a major barrier to development of the cold chain industry in China, said Trachtenberg.

    China has been cooperating with the US, the most developed country in terms of the cold chain industry, to develop its own standards and regulations for the industry. Commercial delegates and experts from both sides have visited each other and talk with each other to share
    experiences.

    The country now has over 200 cold chain standards, mainly developed by government departments and industries for specific products, said Liu Weizhan, secretary general of the National Sub-Committee of Cold Chain Logistics Technology.

    The standards for the cold chain industry are still in their infancy and there is no clear timetable on when they will be rolled out, said Dai Dingyi, vice-chairman of the China Federation of Logistics and Purchasing.

    more >>

  • The Logic of Improved Logistics in Vietnam
  • Vietnam occupies a vital geographical position in Asia, providing a dynamic and diverse cargo transport system. However, the logistics industry in Vietnam has not developed as rapidly as in regional countries like Thailand and China. For this reason, Vietnam is very concerned about boosting the industry to aid its subsequent integration with the region in the near future.

    There are more than 800 mostly small-sized logistics businesses in Vietnam, and they remain modest in terms of capital, technology and manpower. In addition, logistics infrastructure is inadequate, and there are many legal barriers hindering the development of logistics in Vietnam.

    Gopal R , the director for transport and logistics practice of the Frost & Sullivan Company, said that the Vietnamese logistics industry has great potential for development, which domestic businesses have not yet made the most of. At this time, domestic companies handle just 18 percent of total import-exports, with the rest being catered for by foreign logistics companies. Inadequate logistics infrastructure including incomplete road systems running to seaports, warehouses, and airports has resulted in increased logistics costs. This disadvantage has hampered the development of the Vietnamese logistics sector.

    Vietnam must entirely open the logistics market for foreign companies in 2012 following its commitment to the World Trade Organization (WTO). This is a big difficulty for Vietnamese logistics businesses that have to compete with foreign companies that have greater capital and better competitiveness.

    Trinh Ngoc Hien, the deputy chairman of the HB Group, and the chairman and the CEO of the Vinafco Joint Stock Company, said that most domestic logistics companies were transformed from state transport enterprises and are inflexible in their business practices. Most Vietnamese logistics websites are simple as they just show their profile and services, rather than utilities like tools for monitoring orders, ship schedules and paperwork (factors that ship owners are very concerned about while choosing a logistics service provider).

    To keep up with the increasing demand for logistics, Gopal R said that Vietnam needs to improve and develop the nationwide logistics system and diversify transport systems to include road, air and sea routes to better facilitate transport. Vietnam takes advantage in trans-border transport and so it needs to make the most of this advantage to boost the development during regional and global integration
    .

    Experts said that Vietnam needs to consider investment in transport infrastructure as the basis for logistics development following the Seaport Plan for 2020 and the Direction for 2030, the Overland Transport Development until 2020, particularly Project VITRANSS2, regarding comprehensive research into sustainable development of the transport system, and the priority to invest in major logistics projects. In addition, the state needs to put in place policies to support and encourage private or PPP (Public-Private Partnership) investment, set up sound solutions on investment in manpower to stay abreast of the demand for logistics development, improve the law system to foster the development of logistics and domestic 3PL (Integrated Third Party Logistics Service) businesses, launch the EDI (Electronic Data Interchange) system and the non-paper transaction system at customs offices and border crossings, reform administration and make public services transparent. There is also a need to ally businesses and associations to develop together and make them more able to compete with businesses in the region and the world.

    It is expected that Vietnam will be among the top 30 or 40 world economies in terms of World Bank-reported Logistics Performance Index (LPI). It is also expected that the logistics cost as a percentage of the GDP (Gross Domestic Product) will reduce from 25 percent now to 20 percent in the near future and that the logistics service market in Vietnam will maintain the average growth at 20-25 percent annually. – VEN

    more >>

  • Temasek to Inject USD1bn into China Real Estate Market
  • Adjustments China makes in the domestic real estate market provide great opportunities for international capital, which is snapping projects there in the mode of funds.

    Mapletree Investments, a unit of Singapore-based Temasek Holdings, said recently that with the completion of the investment of Mapletree India China Fund, it would establish an about USD 1 billion fund to aim at commercial complexes in first-tier Chinese cities. The fund, focusing on both commercial and residential projects, is expected to be triggered within six to 12 months.

    "Mapletree has entered the Chinese market for a long period of time but till now, it has not gotten a proper opportunity to stretch out reach to commercial complex projects in Shanghai," Loh Shyh, the company's CEO for China, said in an interview. "It is time for it to take move now as real estate projects in the eastern Chinese municipality are mainly industrial and logistics ones."

    According to Mapletree, its core urban complex brand Vivo City will walk out of Singapore for the first time. Vivo City in Xi'an, capital of northwest China's Shaanxi Province, is scheduled to start operation this December. In addition, the Mapletree India China Fund has two projects in Beijing and one in Foshan, Guangdong Province. "The investment totals about USD 617 million, accounting for around 60 percent of the part for China," reiterated Loh. "The remainder is expected to be fulfilled soon as related negations have been started."

    Mapletree India China Fund, with a designed investment size of USD 1.16 billion, is launched to aim at development of office buildings, shopping malls, and residential buildings in China and India, two of the world's largest emerging markets. And of the total, 60 percent to 80 percent will be injected into the Chinese market. "The design period of the fund is '5 + 5' mode and when and how it will quit will mainly depend on the market situation," added Loh. "There is possibility for Mapletree to establish Reits in Singapore but it is not the key. The key is the return on investment."

    Established in 2000, Mapletree focuses on real estate and capital management in Asia. So far, it has stretched out reach to 10 Asian cities including Singapore. And the capital under its management and custody has exceeded SGD 13 billion.


    more >>

  • Going Up in China
  • Magistrali recently moved to Shanghai to be closer to one of the worlds' fastest growing markets. He talks to CHaiNA about risk, commodities and managing more than 2 billion Euros of KONE's global direct and indirect spend.
     
    Why has Kone moved the heads of the sourcing and supplier management organization out to China?
     
    China has become a key growth market for KONE, representing more than 50% of the global 'new equipment' (elevator and escalator) market.Mega-trends such as urbanization and the aging population (which requires more horizontal and vertical transportation) are key drivers spurring this growth for KONE and our industry.
    Additionally our China based suppliers are playing an increasingly important role in driving innovation as well as supply to our global operations.
     
    I have moved to China to ensure that we are well positioned to manage the enormous opportunities ahead of us, and although most of our global roles are still based out of Europe, this will increasingly shift to China based on our business requirements.

    How did you change your department when you moved to KONE in 2005?
     
    Before arriving to KONE in mid-2005, the sourcing organization was highly decentralized and sub-optimized. We have since transformed our sourcing and supplier management organization into a globally integrated operating structure working in alignment across more than 45 business units worldwide.
     
    Having globally harmonized processes, systems and ONE sourcing strategy has greatly enabled knowledge and spend leverage, and our team of more than 180 people has the principal reason for our significant contribution to KONE's bottom-line as well as top-line business impact since 2006.
     
    Adoption of the category management business practice has also ensured cross-functional alignment with our internal business partners such as engineering and manufacturing so that we are all working to support our business requirements as well as common goals and targets.
    Part of sourcing is managing suppliers and fostering supplier development. Any tricks to the trade?
     
    As supplier management and development requires a significant amount of time and energy, a basic perquisite to effective supplier management is having a manageable number of suppliers as well as a clear segmentation process.
     
    We currently have less than 100 strategic direct material suppliers which represent approximately 80% of our global spend, having reduced our supply base by more than 45% since 2006.
     
    Having the right sourcing and supplier management capabilities is another fundamental ingredient to driving the right value from strategic suppliers. This is especially true when driving supplier development initiatives, as this requires the right level of experience and competence to continuously identify and ensure supplier productivity improvements.
     
    We also really focus on our Supplier Day (held this year in Shanghai) which brings together our strategic suppliers once a year and is also a key venue to strengthen the relationship with our strategic suppliers. We use this day not only to solidify our supplier relationships, but also to involve our top executives (including our CEO) as well as my peers such as the Head of Technology and Manufacturing, to communicate our business plans and direction. We do not use this venue to hammer our suppliers but rather celebrate our relationship.
     
    Other 'tools' we use to develop our supplier relationships, include quarterly supplier steering meetings, our certification process, and our 2010 priorities reflect our ongoing pursuit to continuously improve our internal business partner (category management, risk/commodity management) and external partner (supplier development) relationships. Another key priority in 2010 is the roll-out of a 'best practices' integrated sourcing platform to ensure automation, transparency and continuous supplier performance in our journey towards sourcing excellence.
    Are most of your strategic suppliers in China or else-where?
     
    Are most of your strategic suppliers in China or else-where?  
     
    Most of our strategic suppliers have global operations to support our global manufacturing operations. Many of our strategic suppliers have been requested to establish operations in China to support our growth, undoubtedly also lured by the incredible market growth opportunity, whereby other suppliers have been locally developed.
    What would you say are some of the biggest challenges to you job?
     
    The volatility in the commodity and currency market as well as the global electronic components shortages are just some of the challenges we are currently managing. Fortunately we have developed relationships with some very capable suppliers as well as established robust systems that support us to properly manage and mitigate these risks.
     
    Our global commodity team for example filters multiple data sources, including past and current market trends, to establish meaningful future projections that we forecast against. We have also developed a system that was particularly useful in 2009 to continuously monitor the financial health of our supplier chain.
     
    The most important ingredient to an organizations success are its people, therefore ensuring that we continuously attract, retain and develop the best talent is both a positive challenge and tremendous opportunity. I am very conscious of the fact that leadership behavior, the right attitude and common values are the key factors to build a winning culture as well as a trust based, performance driven and fun environment to work in.

    more >>

  • Impact of M&A on Procurement
  • The following business case is purely theoretical / invented and should by no means be associated to any real existing life happenings.
    Let's consider a story between a large company (BIG) and a small company (SMALL), who are both on similar business grounds. Let's fix the parameter at "Marketing, Sales & R&D, the recognized official engine for growth and profit, and let's consider that "procurement comes right after, as a second engine for growth & profit.
     
    BIG is looking for an external acquisition. They have a challenging situation in terms of top line growth and bottom line growth. In both cases, the procurement department holds some responsibility in dealing with these challenges, possibly because they are not transforming supplier relationship management into product innovation fast enough, nor are they finding the right levers to continue to deliver margin enhancement programs. Hence BIG needs an external acquisition
     
    In contrast, SMALL is able to deliver fast top and bottom line growth. This is also due in part to the procurement department, as they probably practice state of the art agility methods which include the agility to deliver profitable innovation and savings on a sustainable basis while optimizing the cost base. Hence, this is one of the reasons SMALL is being targeted.
    Approach and integrate
     
    In the approach phase, SMALL pulls out a defense plan aimed at doubling their savings rate, which is the best way to avoid having shareholders switching over to BiG's offer.
     
    That puts pressure on the procurement department which is living through a once-in-a-life time adventures; they are going into the battle to resist the invader while still investing all their energy into a short term "live or die" story.
     
    After the take over becomes reality, pressure stays strong as ever. BIG has to demonstrate that while both base businesses are being secured, all defense plan savings are still being transformed according to plan. The last thing you want is to have shareholders tell you they are disappointed that the merger did not perform as well as SMALL claimed it would.
     
    Meanwhile, both procurement organizations are working to understand each others organizational design, ways of working, market intelligence and price performance. ObvIous synergies need to be found on rate card alignment, volume leveraged improved prices, common tenders, specification rationalization, and other consolidation activities; all while generating the original defense plan level of savings.
     
    As soon as the organizations start to integrate, the managers of SMALL will find excitement in discovering an enlarged scope and culture that comes from the newly combined company. The downside of this new integration is that the procurement office may find that company BiG makes a habit of segmenting roles and departments. This means the span of procurement influence within the company is smaller even though they are dealing with bigger spend management. Any sort of decision also takes longer consideration time as the number of stake-holders that the procurement team needs to convince is bigger.
    As a leader of the company, it is important to make sure frustration doesn't start to build on all levels of management and that you retain talent after the excitement phase dies down. This is especially true during the structure integration phase where you need to act swiftly to place your best talents in the best roles.
    Extended Uncertainty
     
    World class procurement is harder to embed in mega size companies like BIG than in middle size blue chip companies; which makes SMALL attractive. The agility of small companies enable them to explore a wider variety of procurement levels, work more in cross functional teams, and balance their agenda better between innovation, risk management and margin enhancement.
     
    Nevertheless, an even bigger company is still bound to find the right model for continued growth, avoid the downsides of a big organization and becomes a showcase for effective organizational design in high-complexity, high-spend environments.
     
    The full integration will likely take two to three years, according to the flexibility of your country's legislation. This time will be necessary for the new organization to recover from times of uncertainty, but the pressure for improved delivery will keep them busy and create a wonderful adventure.
     
    However, three years is also just about the right time for another external acquisition if the company has not grown at the shareholder's expected rate from an internal/ endemic top line growth perspective. This is a dangerous prospect, and even though the combined company opens up eras of marketing products, it is important not to fall into a never ending, ever faster, vicious circle of external acquisition which brings its load of downsides. It is also important to re-emphasize the need for procurement departments and other support functions to better balance their agenda towards partnerships for innovation with their suppliers to look for the next generation levers of internal top line sustainable profitable growth, the recipe for virtuous circle of growth.
     
     
     


    more >>

  • Interview with David Simchi-Levi from MIT
  • Interview with David Simchi-Levi from MIT
    Simchi-Levi teaches supply chain management on MA, MBA and PhD levels, and helped found the MiT partnership with JiaoTong University's supply chain management program CLFM, where he is also a guest lecturer. Now, he discusses his list of challenges that companies need to watch out for in their supplychain.
     
    You have your PhD in applied mathematics, what drew you to supply chain management as a field of teaching?
     
    I am an applied mathematician, but i started working on supply chain issues well before it was called supply chain. When I used to work with companies and talk about supply chain they didn't know what that meant and usually said someone in the back office dealt with these operational issues. Now [supply chain] has moved into boardroom discussions. Also, in the last 15 years, i had a software company which developed supply chain solutions - it was a good cycle that allowed me to identify what companies needed to help them address their challenges. It also helped me bring case-studies and credibility to my classroom and shaped my research program.
     
    So, what does your research focus on right now?
     
    Over the last few years, my research has been about how changes in the economy affect supply chain strategies. In my view, there are six main forces putting a lot of pressure on executives managing their supply chain. First off, global supply chains with long lead time suggests that supply chain pipelines are full of inventory, which also means that companies need to invest in collaboration between geographically diverse facilities and partners. Second, customer demand is shifting, and there is a lot of pressure to increase service levels but it's not clear how you address this while minimizing inventory. Third, labor costs in developing countries are increasing - annually, the costs in China have raised 20%, in Mexico 5%, and U.S.3% over the last five years - so if a company made a bunch of sourcing decisions 4-5 years ago, they may need to reconsider them. Companies also have to deal with higher energy prices which affect their transportation costs. In the U.S.alone, total transportation costs increased by almost 50% in the last five years - in parallel inventory costs and levels have increased on average by 60% for US companies. The reason for the increase in inventory is clear. As transportation increases, companies try to bulk up their shipping amounts - which is great for transportation but bad for inventory.

    The last few problems are increasing levels of risk due to companies going lean and relying more on outsourcing and off shoring, which implies a diverse supply chain open to all sorts of disruption. There is also a huge volatility, not only in demand but also in commodity prices, which begs the questions of what contracts companies should sign - you don't know about prices next month. Lastly, companies are also facing pressure to become more sustainable - executives need to manage their supply chain in an environment that is uncertain.
     
    You recently gave a lecture on the concept adapting "flexibility to maximize supply chain performance,
     
    Flexibility is one of the major strategies that companies can take to address the challenges of the modern day global supply chain. Companies who invest in flexibility improve their supply chain performance by better matching supply to demand, increasing service levels, reducing costs and better utilizing resources. I just finished a survey of about 100 companies trying to figure out how many are investing in flexibility. We see more companies investing in flexibility in industries where before we never saw very many. For a long time, it was only hi-tech industries who were investing in flexibility, as their technology turnover was very fast, but it wasn't necessarily part of the CPG industry. Now, over 50% of the companies surveryed reported investing in flexibility.
     
    In your opinion, which companies are implementing flexibility effectively and which ones are not?
     
    Companies sometimes seem to buy into the myth that they only need one supply chain, even if they have multiple products, brands, and channels. This is a huge mistake. GAP has made this mistake - they have three brands - Banana Republic (which sells fashion items), Old Navy (low price clothing) and the GAP (high-end casual wear). These are three very different brands with three different customer value propositions - fashion is all about speed, whereas Old Navy is more about low price and hence low cost and the GAP is somewhere in between - so you need three different supply chains to address each one of these challenges. Most companies would say - well, it's too difficult to implement three different ones, but the problem with just having one is that a company finds itself basically responding to the average.
     
    P&G is doing a good job - they have different supply chains for different product categories but also they take advantages of synergies between different supply chains in terms of procurement, manufacturing, customer service etc. They basically take cross sections to reduce costs, and increase efficiency - P&G does everything from beauty products to diapers - you need completely different supply chains while still finding points of commonality. Dell is facing some challenges. Their problem is that they've always been in the online business, but the real power today comes from selling to the retail channel - in developing countries, customers want to see the product before they purchase. The challenge faced by Dell is that customer value online is different from retail, so you need different supply chain strategies. Dell therefore needs to adjust their supply chain strategy. One could assume they will change, but you can't do that very quickly.
     

    more >>

  • Why China is Not Ready for Lean Manufacturing
  • One of my Silicon Valley clients is sourcing products from several factories in the Pearl River Delta. As part of the relationship with these factories, my client is committed to supplier development including offering training in new techniques. So when product quality at one of these vendors was not achieving the company's standards, the VP of Supply Chain dispatched a team of people to go to China and teach the factory problem-solving Lean Manufacturing techniques. He thought the vendor could leverage Lean methodology to improve the processes and address the quality problems, just as they would in US factories.
     
    The team arrived in Dongguan and went to work giving an overview class on Lean techniques. The factory workers seemed attentive and interested in learning. The next day, the Silicon Valley Lean team gathered the people from the assembly line to begin the process of working on the quality problem. After 3 hours, the Lean team ended the session in utter frustration. No one participated. No one would identify problems on the line. No one knew how to approach gathering or analyzing data. No one volunteered.
     
    So what happened? The training was adequate and the Lean principles and methods are sound and easily understood. Why weren't the Chinese factory workers participating?
     
    This isn't the first time i have seen this happen. Westerners bring good ideas and processes into China and expect these ideas will be wholeheartedly embraced by the Chinese factory workers and management. Chinese say yes, and appear to agree with the instructions. When nothing improves or instructions aren't followed, the Westerners are surprised. They are bringing new techniques and ideas into low-tech manual factories, so why wouldn't the factories want to improve and adopt new ideas?

     
    What these methodologies don't take into account are the cultural differences between the Western world and China. Lean manufacturing principles are based on Western ideas and principles including critical thinking and collaboration. The teachings of Confucius, on the other hand, suggest behaviors that oppose collaboration and criticism and the Chinese have been practicing these behaviors for nearly 3000 years. Children are taught Confucius values in elementary school and families practice them in their daily lives. For example, "saving face is way more important than concerns for quality. If a worker were to criticize the production line processes as the cause for quality problems, the supervisor would surely lose face. So it is very unlikely that anyone would offer criticism.
     
    Being industrious and working long, hard hours is a more important concept to migrant factory workers than anything else. After all, workers have migrated to these factories in order to earn enough money to live a middle class life or return home to improve the lives of their families. The work ethic of the Chinese is legendary. If you take away time from their piece-work or time on the assembly line, you take away earning potential. Lean projects mean time away from normal work and are therefore not considered to be helpful.

    Lean manufacturing and other programs and methods including Six Sigma, Deming Quality, TQM, Quality Circles and others have a long and successful history at companies such as GE and Toyota. They are used to improve processes and address issues that need correcting through 1) Eliminating waste; 2) increasing flexibility; 3) Smoothing the flow; 4) Continuously improving.
     
    These ideas hinge on enhancing productivity, taking away complexity and continuously improving. And this often leads to a reduced need for resources resulting in lay-offs or redeployment of the workers. The methodologies also rely on the workers ability to collaborate, contribute, analyze data and make changes.
     
    In the US and Western Europe, Lean Manufacturing has become a way of life. Workers readily participate and are compensated even when they take time away from their workstations to work on Lean projects. They collaborate, contribute, analyze data from root causes and recommend improvements. In many cases, global companies such as Cisco, Apple, Ford and others, bring their Lean Manufacturing techniques with them to manufacturing sites across China. They teach Lean techniques and expect them to be practiced in their own factories as well as inside their contract manufacturers. But for the hundreds of thousands of other Chinese factories, the pathway isn't so clear. Lean Manufacturing is often met with resistance or at the very least passive non-participation.
     
    Lean programs in the West are often lead by Manufacturing Engineering or QA or an internal consulting department. In China, the workplace is all about production, not the refinement of processes. Chinese engineers are assigned to production and only production. Chinese QA exists to assure that the customer's specs are being met. Internal consulting is an unfamiliar concept. These functions within Chinese manufacturing organizations don't have the time or the inclination to take on Lean projects, no matter what the return on investment suggests.
     
    When I tour factories in China, the story of the Tortoise and the Hare often comes to mind. China's development frenzy is moving faster than anyplace else in the world. Everyone, It seems, is racing to compete for customers and to meet production schedules. But the culture is still moving at a very slow and steady pace and most often wins over new techniques and processes. Confucian values, such as respect for authority, saving face and working hard are the core inner strength of the Chinese worker. Lean principles are just too opposed to these values to be readily adopted.
    Of course, Lean Manufacturing principles, techniques and methods are gradually being introduced in the large global manufacturing sites in China and slowly adopted. Over time, this may lead to a broader adoption in smaller factories, as manufacturing matures in China. But for now, and the next 10-15 years, I see the tortoise winning the race.

    more >>

  • Why Lean Can Happen Anywhere
  • A Story of Change
     
    For over three decades I have been working with major multinationals through some tumultuous times, and it seemed that change was never ending. New global computer systems, new manufacturing and warehouse systems, Total Quality Management, (TQM) Management by Objective, (MB0), World Class Manufacturing, (WCM) (now called Lean) and many, many more. I was invited by the editor to write an article on why some of these changes fail, but I quickly realized I would find it easier and hopefully more interesting for the reader to describe how change succeeds. During these last three decades a formula has evolved for me, which for the last fifteen years allowed me to turn failing and ordinary factories into benchmark sites.
     
    I have successfully managed factories in ireland, USA, India and China. In every case the competition was fierce. Within multinationals each manufacturing source is constantly being compared. You fight to hold what you have, and try everything at your disposal to attract new investment.
     
    To begin the change process at factories, I lay out the challenges, threats and also the opportunities that we may face should we go forward with implementing change. I create a vision that usually is something like "We
    will be among the best in the world among our competition. I tell them that I have a toolkit, which i can apply with their support, but before completing the formula I need their input. So i ask them 4 key questions: what is working, what is not working, what we should retain, and what we need to do to become a great plant. I bring in external facilitators to conduct this exercise with the entire workforce in groups no larger than 20, so that involvement and confidentiality is ensured, and i have the results printed in booklet form and every employee gets a copy. The results rarely surprise; rather they confirm what i am usually observing, but it is a wonderful tool to show everyone that their opinions matter.
     
    Meantime, I am appraising managers at all levels, identifying who is going to embrace what needs to be done, and who will get in the way. It is my experience that at least one third of senior, middle and front line managers need to be separated. Usually, i take on board a small team of consultants I know and trust to help accelerate this process. It is absolutely essential that the people, particularly those at senior level, who are not going to make it are quickly removed. Otherwise, momentum will be slowed down, and undermined by their presence. The Leader must be absolutely ruthless in this, because the greater good, perhaps the very survival of your plant, will be jeopardized.
     
    In parallel with this, we set about putting our Lean tool kit in place. I like to do things in parallel. So I get the purchasing department working with key suppliers to get new kinds of working agreements in place. Kanbans go to our warehouse to start more deliveries in smaller batches. Kanbans go to our factory floor in order to start with a key product that represents a substantial percentage of our total business, ranging from 30 to 70%.
     
    I start with something substantial, so that a large number of people are involved, and generate excitement. The expert consultants I bring in teach people necessary skills including process mapping and get people working throughout the plant to generate improvements. We start to get people thinking about value streams, and usually within three months have one beginning to come together, and others identified to work on later. Bills of materials get redesigned to allow for back flushing, as a feature of my factories is that we only transact materials into the warehouse from suppliers, then to the shop floor when it moves there. We then use back flush to update the system when finished product is booked to the warehouse. The elimination of transactions for work in process (WIP) saves an enormous amount of time and frees up considerable resources. Meantime, we are also changing our financial reports so that every work center has data that they can make sense of, so that they can track their own performance. All data collected is analyzed. If it is not adding value and being used to inform and improve, it is eliminated.
     
    With all of these programs in play and the non-contributing managers and key staff gone, my credibility becomes well established. What I have promised, I am delivering. I have laid out the challenges facing the plant, backing it up with clear evidence. I have asked the workforce to answer the four key questions, therefore taking their views on board, I am separating those not delivering. The factory is looking much better through the 5 S programs, and painting and refurbishment. Data not being used has been dumped, new reports from every department have been redesigned and now both inform and add real value. Space has been freed up in the warehouse and shop floor through the introduction of Kanbans. Value Streams are being created with people from all disciplines sitting together where possible.
     
    Usually after three months great excitement has been generated, with many programs already in place. After six months a very substantial change in both the atmosphere of the plant, its appearance and in improved results is visible. After one year the change is truly spectacular, and then just keeps getting better as people become more familiar with the new way of working and with the various tools and techniques.
     
    This is what works for me. I have achieved the most spectacular results within my (then) wider organization. The plant I was sent to close in the USA was declared a Benchmark site within two years. The Ireland plant survived and still thrives. In my last assignment in Shanghai, I also left a benchmark site behind. With my formula there is no failure, only spectacular success!

    more >>


Site Mailing List  Sign Guest Book  View Guest Book 
The Cure For Your Compliance Ills

Love your freedom?  Thank a VET today! 


The DOT Doctor
USA

Phone / VM: (251) 217-1767

info@thedotdoctor.com

 

Custom-embroidered logo shirts and apparel by Queensboro

Site Powered By
    Website Builder
eBizWebpages.com website design
Keep on truckin'
Keep your mind on the road and leave the compliance issues to us.

CSA 2010 is here! Learn how to protect yourself and your company. Free Download - Debunking CSA 2010.


Comprehensive Safety Analysis 2010 - csa2010.fmcsa.dot.gov


The DOT Doctor on Facebook

Listen to The DOT Doctor on internet talk radio

The DOT Doctor Cures You Compliance Ills
We specialize in DOT Compliance and Safety Management. "Let the DOT Doctor cure your ills today! Monthly Special - sign a new truck for IFTA filing service starting at $10.

Contact The DOT Doctor Today!

Sales - sales@thedotdoctor.com

Information - info@thedotdoctor.com

Tax Services or Questions - taxprep@thedotdoctor.com

Webmaster - webmaster@thedotdoctor.com

IT Support / Help Desk - helpdesk@thedotdoctor.com

 


 

Sign up for our newsletter and savings coupons - newsletters@thedotdoctor.com

 Phone / VM:  (210) 810-7597

     Skype Me?!

Alternative Phone / VM: (251) 217-1767

 

Buy your copy of Dr. Andrea Sitler PhD's book on transport and handling of nuclear waste.  Learn the story behind Yucca Mountain.  Understand Pu and its uses in combating Global Warming.  Pu: Energy Source or Death Source available through Amazon or buy directly through the DOT Doctor's site.